Singapore knocked Japan's capital Tokyo out of the top spot, according to the bi-annual report.

"Car costs have very high related certificate of entitlement fees attached to them, which makes Singapore significantly more expensive than any other location when it comes to running a car," the Economist's report says, according to CNN.

"In addition, as a city-state with very few natural resources to speak of, Singapore is reliant on other countries for energy and water supplies, making it the third most expensive destination for utility costs," the report continues.

The Worldwide Cost of Living survey compared 130 cities in nearly 90 countries, gathering detailed market information between June and December of 2013.

France's city of lights, Paris, is considered the second most expensive city to live in, while Norway's Oslo was third on the list. Zurich, Switzerland, and Sydney, Australia, rounded out the Top 5 most expensive cities in the world.

Asia is also home to the three least-expensive cities in the world. According to the survey, the Indian city of Mumbai is the least expensive city worldwide, while the nation's capital of New Delhi is third from the bottom.

"Although India has been tipped for future growth, much of this is driven by its large population and the untapped potential within the economy," the report says, according to CNN.